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Saturday, February 27, 2021

What is the reason for the record breaking boom in the stock market? Where will the money be made now

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The major benchmark index Sensex reached a new historical level on Thursday due to the boom in the stock markets across the world. During this time, the Sensex crossed the 50 thousand level for the first time. The main reason behind this boom is being told by foreign investors to be shopping in the Indian market. Experts say that the Sensex crossed the 1000 level for the first time in the year 1990, even then people were surprised and now that the Sensex has crossed the 50 thousand level, then they are not convinced yet. However, there may be some profit booking after the budget. But investors still have a chance to earn.

Why is the domestic stock market gaining momentum?

Asif Iqbal, research head of Escort Security told TV9 Hindi that the boom in global markets is the main reason. Apart from this, the central government has taken several important steps to bring the country’s economy back on track during the Corona epidemic. The effect of which is now visible. Rating agencies across the world have also praised the government’s steps. That is why the confidence of foreign investors has returned to Indian markets.

Vivek Mittal, Head of Research, VM Portfolio, told TV9 Hindi that foreign investors have purchased Rs 20,098 crore from January 1 to January 20. That is why the stock market is touching historical levels.

He told that earlier in November, December also, foreign investors have made record investments in Indian markets. Let us tell you that foreign investors have invested Rs 48,223.94 crore in the Indian stock market in December. Earlier in the month i.e. November, a record 65,317.13 crore was purchased.

Now what next

Stock market experts say that the vaccination program has started to stop the corona epidemic in India. That is why the tension of the corona epidemic is over now. At the same time, the union budget is going to be presented on February 1. In this budget, the government is expected to take steps for many major economic reforms.

If this happens, the income of companies will increase and people will get more employment. Therefore, along with the common man, the economy will also be back on track.

A look at Sensex’s journey of 50 thousand

The Sensex touched 1000 levels for the first time in the month of July of 1990.
Sensex touched 5000 level for the first time in October 1999
In February 2006, the Sensex touched 10,000 levels for the first time.
In July 2007, the Sensex touched 15,000 levels for the first time
In December 2007, the Sensex crossed the 20000 mark for the first time.
In May 2014, the Sensex crossed the 25,000 level for the first time.
In March 2015, the Sensex crossed the 30,000 level for the first time.
In January 2018, the Sensex crossed the 35,000 mark for the first time.
Sensex crosses 40,000 level for the first time in February 2020
Sensex crosses 45,000 level for the first time in December 2020
The Sensex crossed the 50000 level for the first time in January of 2021

What should investors do now

Many big brokerage firms in the country and the world have predicted that the stock market will be touching new heights in the coming days. However, now there is no expectation of a big rise in the index. But midcap and smallcap stocks can see a sharp growth.

Asif says that in the budget, there may be a focus on infra and housing. In such a situation, one can see an increase in L&T, UltraTech Cement, Godrej Properties.

The Auto Ancillary EV has a lot of scope ahead. Battery-making companies will make strong profits for the next 10 years. In the next one year, the Nifty can see a level of 15000-16000 upwards. The 13000 has strong support at the bottom.

Brokerage house Nomura has suggested buying at Bazaar Bazaar Finserv. The share target has been increased to Rs 10375. It has been told in the report that the phase of difficulties is over and the situation seems to be improving. According to them, investing in lending business is a better option. At the same time, the stock is expected to remain steady.

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